Trade Gains, Paretian Transfer and the Tragedy of the Commons
Recently, the issue of worldwide environmental quality has been discussed in the context of trade liberalization on a global scale. Two diametrically opposite tenets have been recorded. According to one tenet - the cons-increasing opportunities for profitable exchange created by trade liberalization would enhance the production of goods, hence increase the "pollution", its environmental by product. According to the other tenet, however, free or "freer" trade does not necessary have detrimental effects on the environment.
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